UPDATE: Compass Point Initiates Terreno Realty at Buy on Growth Outlook
Compass Point initiated coverage on Terreno Realty (NYSE: TRNO) with a Buy rating and a $17 price target.
Compass Point noted, "We are initiating coverage of TRNO with a Buy rating and $17.00 price target, which combined with the $0.48 annualized dividend represents 14% upside. We see material upside to our price target should the company outpace our $100 million acquisition assumption, particularly at higher cap rates. Still, the need for common equity to maintain prudent leverage ratios is real and as such we've concluded that the stock is still worth at least $17/share on a larger equity base (see pg 18). Alternately, our price target assumes a 10% liquidity discount to our $18.52 NAV estimate. Some tenant credit concerns exist (namely YRC) but management's strong track record from its AMB days gives us comfort that the company will be able to both source accretive deals and effectively manage risk going forward."
Terreno Realty closed at $15.28 on Thursday.
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